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Lumen (LUMN) to Report Q1 Earnings: Is a Beat in the Offing?
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Lumen Technologies, Inc. (LUMN - Free Report) is scheduled to report first-quarter 2021 results on May 5, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 50%, surpassing the Zacks Consensus Estimate by 16 cents. In the first quarter, the Monroe, LA-based telecommunications company is expected to have recorded lower revenues on a year-over-year basis due to challenges induced by the COVID-19 pandemic.
Factors at Play
During the quarter under review, Lumen joined forces with J-Stream to cater to the requirements of broadcasters, major corporations and over-the-top operators based in Japan with scalable Content Delivery Network services. It also partnered with the State of Nebraska Public Service Commission to enable the latter to utilize its next generation 911 (NG911) platform for enhanced communications during any emergency. Moreover, the company unveiled enhanced NG911 functionality that incorporates real-time visibility in customers' emergency call management systems for a robust emergency response.
It collaborated with software giant, SAP, to support value-added resellers and mid-market customers with cost-effective, streamlined cloud services in the quarter. As part of the global partnership, SAP HANA will be integrated into Lumen’s cloud management platform for businesses leveraging SAP Business One, an enterprise resource planning solution for small businesses. It also extended partnership with VMware to accelerate the development of edge computing and work-from-anywhere solutions. The combined capabilities are likely to enable customers to deliver an improved experience for applications, from the cloud core to the distributed network edge.
Lumen expanded its Edge Computing Solutions infrastructure to accelerate growth and innovation for enterprises for a competitive advantage. The move will not only enable customers to capitalize on Lumen Network Storage but also make the best use of Lumen Edge Bare Metal services online with first-hand access to superior computing infrastructure. The company also announced the appointment of Quincy L. Allen to its board of directors, with immediate effect.
During the first quarter, it teamed up with IBM for the incorporation of IBM Cloud Satellite with the Lumen edge platform. With majority of the workloads shifting toward the edge, the integration will help clients to develop innovative solutions on the back of near real-time hybrid cloud services. As a prime edge compute partner, Lumen is responsible for integrating IBM Cloud Satellite in 180,000 enterprise locations.
However, decline in legacy voice services coupled with economic hardships led by the virus outbreak, is likely to have had an adverse impact on Lumen’s first-quarter revenues. Moreover, substitution of its traditional wireline telephone services by wireless and other competitive low-priced offerings might have further dampened its top line in the to-be-reported quarter. The Zacks Consensus Estimate for total revenues for the first quarter is pegged at $5,057 million, suggesting a fall from the year-earlier reported figure of $5,228 million. Meanwhile, the consensus mark for earnings is currently pegged at 41 cents per share, indicating a 10.8% jump from 37 cents reported in the year-earlier quarter.
Earnings Whispers
Our proven model predicts an earnings beat for Lumen this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is perfectly the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Lumen’s Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +6.10% as the former is pegged at 44 cents and the latter at 41 cents.
Here are some other companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Sun Life Financial Inc. (SLF - Free Report) is scheduled to release first-quarter 2021 results on May 5. The company has an Earnings ESP of +9.26% and carries a Zacks Rank #2, at present.
Gildan Activewear Inc. (GIL - Free Report) has an Earnings ESP of +7.69% and a Zacks Rank of 2. The company is set to report first-quarter 2021 results on May 5.
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Lumen (LUMN) to Report Q1 Earnings: Is a Beat in the Offing?
Lumen Technologies, Inc. (LUMN - Free Report) is scheduled to report first-quarter 2021 results on May 5, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 50%, surpassing the Zacks Consensus Estimate by 16 cents. In the first quarter, the Monroe, LA-based telecommunications company is expected to have recorded lower revenues on a year-over-year basis due to challenges induced by the COVID-19 pandemic.
Factors at Play
During the quarter under review, Lumen joined forces with J-Stream to cater to the requirements of broadcasters, major corporations and over-the-top operators based in Japan with scalable Content Delivery Network services. It also partnered with the State of Nebraska Public Service Commission to enable the latter to utilize its next generation 911 (NG911) platform for enhanced communications during any emergency. Moreover, the company unveiled enhanced NG911 functionality that incorporates real-time visibility in customers' emergency call management systems for a robust emergency response.
It collaborated with software giant, SAP, to support value-added resellers and mid-market customers with cost-effective, streamlined cloud services in the quarter. As part of the global partnership, SAP HANA will be integrated into Lumen’s cloud management platform for businesses leveraging SAP Business One, an enterprise resource planning solution for small businesses. It also extended partnership with VMware to accelerate the development of edge computing and work-from-anywhere solutions. The combined capabilities are likely to enable customers to deliver an improved experience for applications, from the cloud core to the distributed network edge.
Lumen expanded its Edge Computing Solutions infrastructure to accelerate growth and innovation for enterprises for a competitive advantage. The move will not only enable customers to capitalize on Lumen Network Storage but also make the best use of Lumen Edge Bare Metal services online with first-hand access to superior computing infrastructure. The company also announced the appointment of Quincy L. Allen to its board of directors, with immediate effect.
During the first quarter, it teamed up with IBM for the incorporation of IBM Cloud Satellite with the Lumen edge platform. With majority of the workloads shifting toward the edge, the integration will help clients to develop innovative solutions on the back of near real-time hybrid cloud services. As a prime edge compute partner, Lumen is responsible for integrating IBM Cloud Satellite in 180,000 enterprise locations.
However, decline in legacy voice services coupled with economic hardships led by the virus outbreak, is likely to have had an adverse impact on Lumen’s first-quarter revenues. Moreover, substitution of its traditional wireline telephone services by wireless and other competitive low-priced offerings might have further dampened its top line in the to-be-reported quarter. The Zacks Consensus Estimate for total revenues for the first quarter is pegged at $5,057 million, suggesting a fall from the year-earlier reported figure of $5,228 million. Meanwhile, the consensus mark for earnings is currently pegged at 41 cents per share, indicating a 10.8% jump from 37 cents reported in the year-earlier quarter.
Earnings Whispers
Our proven model predicts an earnings beat for Lumen this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is perfectly the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Lumen’s Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +6.10% as the former is pegged at 44 cents and the latter at 41 cents.
Lumen Technologies, Inc. Price and EPS Surprise
Lumen Technologies, Inc. price-eps-surprise | Lumen Technologies, Inc. Quote
Zacks Rank: Lumen currently has a Zacks Rank #3.
Other Stocks to Consider
Here are some other companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Genco Shipping & Trading Limited (GNK - Free Report) is slated to release first-quarter 2021 results on May 5. It has an Earnings ESP of +200.00% and currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sun Life Financial Inc. (SLF - Free Report) is scheduled to release first-quarter 2021 results on May 5. The company has an Earnings ESP of +9.26% and carries a Zacks Rank #2, at present.
Gildan Activewear Inc. (GIL - Free Report) has an Earnings ESP of +7.69% and a Zacks Rank of 2. The company is set to report first-quarter 2021 results on May 5.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>